The Department of Education briefed the Education Appropriations Committee on the state Capital Outlay program and how entitlement funding is calculated.

"Capital Outlay is [a] pre K'12 entitlement program," said Ty Kaysen, the department official leading the presentation, who explained the program provides state "entitlement funds" to local school systems based on five-year full-time-equivalent (FTE) projections and projects listed in local facility plans. Kaysen said athletic facilities and portions of facilities used primarily for athletic competition are not eligible for Capital Outlay funding.

Why it matters: the department's entitlement formula determines how much each district may receive from the annual appropriation and shapes which projects can get state participation. Committee members pressed staff on whether the formula and the underlying FTE counts reflect real-time growth in fast-growing districts.

How the formula works: staff described entitlement as a statewide authorization that is distributed to districts in proportion to their "eligible need" as recorded in each district's local facility plan. Entitlement earnings are tied to either a facility's age or FTE-based factors for additions, renovations or new construction. Kaysen said a project must be in a district's local facility plan to be eligible for state funds.

FTE collection timing and authority: staff said the department uses October and March FTE counts (collected in the first two weeks, with dates referenced as Oct. 4 and March 4) to calculate awards and projections. The department told members it does not have unilateral authority to adjust reported FTE counts; any discrepancies may require district review and follow-up.

Overbuilding and surplus instructional units: staff said the use of actual FTE counts and required facility plans limits state funding for speculative overbuilding, but districts may still choose to build additional capacity with local funds. That local decision can create a surplus of instructional units (IUs) that reduces a district's eligibility for future state participation.

Reimbursement rates and construction costs: using 2025 RSMeans data, staff reported an average new elementary construction cost of $337 per square foot and said current state reimbursement for elementary construction is about $80 per square foot. Department officials told the committee the state's reimbursement historically covers roughly 2030% of total project costs and that the department will ask the legislature to increase participation toward roughly 40% to narrow the gap between local cost burdens and state support.

Asset lifespans and facility tracking: staff summarized standard replacement/eligibility timing used by the department: roof warranties are tracked at about 20 years, HVAC at about 10 years and kitchen equipment about 15 years. The department said it maintains a Facility Schools Registry (FSR) and can provide reports on former or unused school properties.

COPS software: department staff said the COPS (Capital Outlay Planning System) software is more than 10 years old and has produced application and plan issues. IT has quoted a replacement or major upgrade at about $2,000,000; committee members asked for a formal business case showing what is failing now and the consequences of deferring replacement.

Committee requests and follow-up: members asked for district-level breakdowns (who uses SPLOST, past entitlement awards by district and recent recipients of outlay dollars) and asked for the IT business case for upgrading COPS. Staff agreed to provide those materials.